Percent of Income

If the Percent of Income.. method is selected for the Method for Calculating Income Needed... the following prompts will be visible:

Percent of income when the individual retires

This is the percent of income that the client needs at retirement. If a spouse is included in the illustration, there are three time periods:

1.Percent of income when only one person is retired (first retirement).

2.When both are retired (a percentage of the combined income at retirement, with inflation applied to the first retiree's retirement income).

3.When there is one surviving spouse (a percentage of the survivor's income at retirement, with retirement inflation applied).

Note:If there is a significant difference in the client's and spouse's incomes, a higher percentage (e.g. 200%) may be needed for the lower income.

Use predefined model

A predefined model may also be selected. This allows for income needs to change over retirement (e.g. 90% of income until age 70, 80% of income until age 80, and then 70% of income onward). Select the pre-defined model. The model may also be edited by selecting File/Config from the ribbon bar (or pressing the editor button on the Retirement Income Model prompt), then selecting Gap Analysis/Retirement Income Models from the navigator on the left. Click here for more information about editing retirement income models.

Create custom model with various levels of income

This allows for creating a custom retirement income model, similar to what is available in the pre-defined models, but custom to the participant's particular needs. Model must contain a First Retirement event.

Gap Analysis Retirement Income Custom Model

Hint:Click the 'Copy Model' button, and select a model from the drop down list to start with a pre-configured model.